The UAE's 9% Corporate Tax preserves a 0% rate for a Qualifying Free Zone Person — but only on qualifying income, only if you meet substance requirements, stay within de-minimis limits, and prepare transfer-pricing documentation. One disqualifying transaction can tip your entire profit to 9%. Next Tax Source assesses your QFZP status honestly, structures your income to protect the 0% where it genuinely applies, and prepares your Corporate Tax registration and return for an FTA-registered tax agent to sign.
Do free zone companies pay 0% corporate tax?
Only Qualifying Free Zone Persons pay 0%, and only on qualifying income. Non-qualifying income — and a failure to meet substance or de-minimis rules — is taxed at 9%. The status must be earned and documented, not assumed.
What counts as qualifying income for a free zone company?
Broadly, income from transactions with other free-zone persons and certain qualifying activities, excluding most mainland UAE-sourced and 'excluded' activity income. We map your revenue streams against the FTA's qualifying-activity list.
Do I still need to register if I expect to pay 0%?
Yes. Corporate Tax registration with the FTA is mandatory for free-zone companies regardless of the rate you ultimately pay, and returns must still be filed.
Is transfer-pricing documentation required for free zone companies?
If you transact with related parties and meet the thresholds, yes — and a QFZP must maintain audited financial statements and TP documentation. We prepare both.
Every Filing, Signed By A Professional
We prepare it all to a ready-to-sign standard; an FTA-registered tax agent reviews and signs before anything is filed. Tell us your situation and we'll return a scoped proposal within one business day.
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